November 14, 2025 Richmond Hill, Ontario Department of Finance Canada
In a rapidly changing and uncertain world, Canada’s new government is focused on what we can control. We are protecting our communities and our country. We are building our economy with major projects and millions more homes. We are empowering Canadians with lower costs and new opportunities to help you get ahead. We cannot control what other nations do, but we can control what we choose to build – and we are building Canada Strong.
Canada has a skilled and adaptable workforce, the most educated in the world. On November 4,the Honourable François-Philippe Champagne, Minister of Finance and National Revenue,tabled Budget 2025 – the government’s plan to deliver generational, transformational investments to grow our economy, empower workers, create high-payingcareers, and protect and support those most affected by trade disruptions.
First, to train the newest generation of Canadian builders,Budget 2025 will expand theUnionTraining and Innovation Program. This will boostunion-based apprenticeship trainingin the Red Seal trades,and ensure there are Canadian workersto build major infrastructure and millions more homes across the country.
Second, to recognize the vital role of personal support workers, Budget 2025 will introduce a temporary five-year Personal Support Workers Tax Credit. Eligible workers will be able to claim arefundable tax credit equal to five per cent of their eligible earnings, providingsupport of up to $1,100 per year. This new tax credit will be available in provinces and territories that are not covered by a bilateral agreement with the federal governmentto increase wages for personal support workers.
Third, to protect workers’ rights, promotelabourmobility, and strengthen competition, the upcoming budget will amend the Canada Labour Codeto restrict the use of non-compete agreements in employment contracts for federally regulated businesses. This will empower workers to move more freely to a higher-paying career or start their own business.
Fourth, Budget 2025 will invest $97 million over five years to create a Foreign Credential Recognition Action Fund. The government will work with the provinces and territories to make credential recognition fairer, faster, more transparent, helping qualified foreign-trained professionals contribute more quickly to Canada’s workforce, including in fields facing labour shortages such as healthcare and construction.
Additionally, for workers impacted by U.S. tariffs, and as announced by the Prime Minister in September, the government is implementing a new reskilling package, launching a new digital jobs and training platform to quickly connect Canadians to careers, and enacting temporary Employment Insurance measures to support people whose jobs have been impacted.
Quotes
“Canadian workers power our economy. We’re taking strong, targeted action to support those affected by trade disruptions and to help every worker build the skills and resilience needed for the future. Our goal is simple: to maintain and expand Canada’s skilled, educated, and adaptable workforce, and empower the workers whocare for us and build the strongest economy of the G7.”
– The Honourable François-Philippe Champagne, Minister of Finance and National Revenue
“Canada’s workers are the backbone of our country.With budget 2025, we’re investing in the people who care for our loved ones and helping internationally trained professionals put their skills to work faster to address labour shortages in important sectors like healthcare. Our government is making sure every worker can contribute to a stronger Canada.”
– The HonourableRuby Sahota, Secretary of State (Combatting Crime)
Quick facts
- The new reskilling and support package for workers affected by trade disruptions includes:
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- $50 million over five yearsand $8 million ongoing,to implement a new digital tool to facilitate job search and applications, and launch a national online training platform in partnership with the private sector.
- $570 million over three yearsthrough Labour Market Development Agreements with provinces and territoriesto supporttraining and employmentassistanceforworkersimpactedby tariffs and global market shifts.
- $382.9million over five years,and $56.1 millionongoing,to launch new Workforce Alliances tobring together employers,unions,and industry groups to work on ways to help businesses and workers succeed in the changing labour marketandcoordinate public and private investments in skills development.A newWorkforce Innovation Fundwill invest in projects tailored to local job markets to help businessesinkey sectors and regions recruit andretainthe workforce they need.
- Temporary flexibilities to the Employment Insurance (EI) Work-Sharing Programto provide EI benefits to eligible employees who agree to work reduced hours due to a decrease in business activity beyond their employer’s control. This helps employers and employees avoid layoffs while supplementing reduced income with EI benefits. This measure is expected to cost $370.5 million over five years, and $18.5 million ongoing.
- Temporary EI measures that enhance income supports for Canadian workers whose jobs have been impacted by the economic uncertainty caused by foreign tariffs.These supports are expected to cost $3.6 billion over three years.
- Many newcomers to Canada already have extensive training in sectors where Canada is experiencing labour shortages, including doctors, nurses, and other healthcare professionals, as well as workers in construction occupations. Budget 2025 will propose to provide $97 million over five years, starting in 2026-27, for Employment and Social Development Canada to establish the Foreign Credential Recognition Action Fundand work with the provinces and territories to improve the fairness, transparency and timeliness of foreign credential recognition, with a focus on health and construction sectors.This funding would be sourced from existing departmental resources.
- Building major infrastructure and millions more homes will create high-paying careers for Canadians, but that means the newest generation of Canadian builders must get the proper training. Budget 2025 will propose to provide $75 million over three years, starting in 2026-27, to Employment and Social Development Canada to expand the Union Training and Innovation Program, which supports union-based apprenticeship training in the Red Seal trades.
- Non-competeagreements that prevent workers from moving to rivals or starting a competingbusinessreducecompetition and underminethe efficiency of thelabourmarket. The government will launchconsultations on proposed legislative changes for restricting these agreements in early 2026.
- Personal support workers help Canadians toliveand grow old with dignity and helped us get through the COVID-19 pandemic.The February 2023 Working Together to Improve Health Care for Canadians planprovided $1.7 billion over five years to increase wages for personal support workers, with bilateral agreements signed by British Columbia ($232 million), Newfoundland and Labrador ($25 million), and the Northwest Territories ($5.3 million). The new Personal Support Workers Tax Credit will be available for the 2026 to 2030 taxation years, to eligible workers employed in provinces and territories not covered by this existing support.
Associated links
· Prime Minister Carney launches new measures to protect, build, and transform Canadian strategic industries